MGT 291 Lecture Notes - Lecture 14: Track Geometry, Formal System, Organizational Chart
Chapter 14: Organizational Structure and Design
- organizational design: the process of selecting and managing aspects of organizational
structure and culture to enable the organization to achieve its goals
- organizational structure: the formal system of task, power, and reporting relationships
- organizational chart: diagram of the chain of command and reporting relationships in a
company
characteristics of organizational structure:
- division of labor: the degree to which employees specialize
- span of control: the number of people reporting directly to an individual
- hierarchy: the degree to which some employees have formal authority over others
- formalization: reflects the extent to which organizational rules, procedures, and
communications are written down
- centralization: the degree to which power and decision making authority are concentrated
at higher levels of the organization rather than distributed
o centralized organizations: concrete power and decision-making authority at higher
level in the organization
o decentralized organizations: the authority for making decisions affecting an
organization is distributed
Mechanistic and organic structure
- mechanistic organizations: rigid, traditional bureaucracies with centralized power and
hierarchical communications
- organic organizations: flexible, decentralized structures with less clear lines of authority,
decentralized power, open communication channels, and focused on adaptability in
helping employees accomplish goals
What Influences Organizational structure?
- Business strategy
- External environment
- Nature of the organizations talent
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Document Summary
Organizational design: the process of selecting and managing aspects of organizational structure and culture to enable the organization to achieve its goals. Organizational structure: the formal system of task, power, and reporting relationships. Organizational chart: diagram of the chain of command and reporting relationships in a company characteristics of organizational structure: Division of labor: the degree to which employees specialize span of control: the number of people reporting directly to an individual. Mechanistic organizations: rigid, traditional bureaucracies with centralized power and hierarchical communications. Organic organizations: flexible, decentralized structures with less clear lines of authority, decentralized power, open communication channels, and focused on adaptability in helping employees accomplish goals. Prebureaucratic structure: refers to smaller organizations with low standardization, total centralization, and mostly one-on-one communication. Bureaucratic structure: refers to an organizational structure with formal division of labor, hierarchy, and standardization of work procedures.
